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A previous home loan discharged through Chapter 7 or Chapter 13 bankruptcy is not quickly forgotten by mortgage lenders. The previous lender may continue reporting it for up to a decade and the new lender you seek financing with requires you to wait several years before approving you for another home loan. Fortunately, a home loan discharge does not disqualify you from borrowing again. A lender can approve you if you meet certain criteria.

Types

A borrower generally acquires a home loan in one of two ways: through a purchase or refinance transaction. The purchase loan is tied to a real estate sales transaction and a refinance replaces an existing home loan with the proceeds of a new loan on the same home. Purchase and refinance loans require the borrower undergo underwriting, a process which involves an analysis of the borrower's credit history by the lender.

Bankruptcy Seasoning

Lenders have a minimum waiting period, or seasoning requirement, for a previous bankruptcy. Chapter 7 requires more seasoning because it liquidates debt. Chapter 13, which involves debt repayment, has a shorter seasoning requirement. It remains on credit up to seven years, while Chapter 7 stays on the report for up to 10 years, My FICO says. Fannie Mae, which backs a majority of the nation's home loans, requires seven years' seasoning for any bankruptcy type. The Federal Housing Administration, which specializes in insuring loans for borrowers with credit challenges, requires two years' seasoning after Chapter 7 and one year of seasoning from the start of a Chapter 13 repayment period.

Requirements

In general, you must re-establish good credit or demonstrate responsible financial management to obtain a new home loan. FHA's flexible guidelines allow you to acquire its insurance if you have not taken on any new debt since the home loan discharge. It requires only 3.5 percent down payment with a 580 or more credit score and 10 percent down payment with a score of 500 to 579. Fannie requires that you meet its lender's minimum credit score, usually a 620 or more, and requires you to put down at least 20 percent.

Considerations

When applying for a new home loan, the lender requires an explanation for derogatory credit, such as bankruptcy. You must explain in detail the circumstances that led up to the bankruptcy filing and discharge of the home loan. The lender considers the explanation to determine whether you have recovered from the financial hardship and whether extenuating circumstances beyond your control led to the bankruptcy. In the presence of extenuating circumstances, the lender reduces or waives the seasoning period. You must demonstrate that a serious illness, death of a wage-earner or divorce caused the bankruptcy.

About the Author

K.C. Hernandez has covered real estate topics since 2009. She is a licensed real estate salesperson in San Diego since 2004. Her articles have appeared in community newspapers but her work is mostly online. Hernandez has a Bachelor of Arts in English from UCLA and works as the real estate expert for Demand Media Studios.